DUG Technology's (ASX:DUG) fiscal first-half revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) missed "conservative" estimates, but its strong order book suggests continued earnings growth, according to a Wednesday note by Euroz Hartleys.

In February, the company reported that revenue in the fiscal first half fell 4% to $28.7 million from $30 million a year earlier. Euroz Hartleys was expecting a revenue of $30.3 million.

EBITDA for the same period fell 27% to $5.2 million from $7.1 million a year earlier, while Euroz Hartleys expected $6.7 million.

The company's order book rose 4% to $42.2 million from $40.5 a year earlier, beating Euroz Hartleys' estimate of $36 million.

Despite the underperformance in the first half, Euroz Hartleys expects a strong second half driven by the higher services order book.

Euroz Hartleys believes DUG's stock is trading "cheaply" but sees royalties and sales from emerging verticals like its DUGCool and DUGNomad, offering significant medium-term growth potential.

The firm maintained a speculative buy rating on DUG but lowered its price target to AU$2.11 from AU$2.19.